Stocks to buy

MULN Stock: The Case for Mullen Hitting $1 in 2023

California-headquartered Mullen Automotive (NASDAQ:MULN) is one of many competitors in the electric vehicle (EV) market. However, MULN stock has been sold off so severely that it’s looking like an irresistible bargain. Getting back to $1 next year is entirely possible, as Mullen is reducing its debt while entering boldly into the last-mile delivery EV niche.

Don’t misunderstand — there’s certainly no guarantee that Mullen Automotive shares will return to $1. This is a speculative bet and all position sizes should be small.

That said, it’s exciting to wager on an ambitious automaker that Wall Street seems to be overlooking now. As Mullen Automotive completes a potentially game-changing acquisition, investors can hop on board now and see what 2023 brings.

What’s Happening With MULN Stock?

Speaking of 2023, hopefully, it will bring a recovery in MULN stock, as it’s trading at an absurdly low price now. Bear in mind, this was a $5 stock in January, and now it trades for less than 25 cents.

That’s unjustifiable. Mullen isn’t filing for bankruptcy or shutting its doors to customers. We’re not talking about a business that’s circling the drain. Not long ago, Mullen Automotive announced that it has eliminated around $13 million of debt and has less than $10 million of debt remaining.

Plus, Mullen Automotive is venturing into the European EV market. To that end, the automaker has agreed to appoint an Ireland-based dealership group,  Newgate Motor Group, to market and provide other support for the Mullen I-GO in Ireland and the U.K.

The I-GO is Mullen Automotive’s urban commercial delivery vehicle, designed to navigate “space constraints in dense cities throughout Europe.” With Newgate’s help, Mullen could make a significant dent in the European EV industry next year.

Mullen Automotive Ventures Into Last-Mile Delivery

It’s been a long time in the making, but Mullen Automotive finally closed its acquisition of Electric Last Mile Solutions. As you might have surmised, Electric Last Mile Solutions manufactures last-mile delivery EVs.

This is a very specific niche industry, and Mullen is audaciously staking its claim with this acquisition. Electric Last Mile Solutions’ delivery vehicles are roomy and efficient and outfitted with real-time logistical tracking tools.

Besides, this acquisition sets Mullen Automotive up to enter the last-mile delivery vehicle market quickly. As Mullen explains, the Mullen Automotive “asset acquisition of all IP [intellectual property] and inventory will allow Mullen to launch into the commercial market much earlier than previously planned.”

How soon will the commercial launch be? It shouldn’t be long now, actually. After the final certification is completed, Mullen expects to deliver “Class 1 products in Q1 2023, followed by its Class 3 vehicles in Q2.”

What You Can Do Now

Mullen Automotive is highly ambitious as the company ventures into Europe, pays down its debt and acquires a last-mile delivery EV business. Clearly, Mullen will be a fierce competitor in 2023.

Hence, it’s conceivable that MULN stock can revisit $1 during the coming year. If you’re prepared to take a chance on Mullen with a small share position, consider buying now. The price is far below the $1 mark at the moment, but it might not stay there much longer.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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